How Consumer Trends Affect Supply Chain Planning

By admin

In the past, consumers have had very little or no influence at all on the supply chain because they were oblivious of what it was. A consumer would order an item but could have no clue where it is made or who makes it or even when to expect the delivery. However, today’s consumers are actively involved in the creation of the supply chain. The retail supply chain software used by businesses today recognizes the role that consumers play in supply chain management.

The supplier’s decisions are now based on the needs and opinions of the consumers. CBX Software looks into more ways in which consumer trends affect the supply chain planning.

Order Tracking

With the ability to track orders, consumers expect more from their supplier. As such, companies have to pay more attention to their supply chain and quickly solve any shortcomings that could possibly delay the delivery time. If they fail to do so, the clients will start canceling their orders and order from companies with a better supply chain capability.

Sustainable Practices

Consumer demand for more viable business practices can significantly affect the supply chain planning. For instance, most people looking for a TV will want an upgrade of the product, but within a budget, durability, and environmental sustainability. Consumers who take sustainability seriously are even willing to pay more to achieve the same. Thus, if a company cannot satisfy this in their supply chain, they will be forced to look elsewhere.

Shipping Bonuses and Advantages

Big companies such as Amazon can afford to offer free shipping, thus attracting millions of consumers. Other marketplace sellers must go back and adjust their Supply Chain Management software and figure out creative ways to attract customers. They then start distinguishing their products from the rest and offering better and more bespoke and personal services.

An Increased Volume of Orders

Companies now need better Retail Supply Chain management software to handle the increased volume of orders. Suppliers must tend to the large orders of products to stores as well as the small orders needed at the consumer level. Warehouses must now deal with both small and mid-sized orders to ensure both the merchants and small-scale customers’ needs are taken care of.

As you can see, consumers are playing a big role in the supply chain planning for all business. Competitors may soon overtake any business not involving the consumers. Start examining your supply chain today and incorporate the CBX Software to help you in better planning.